September, 2018 (Volume: 35 / Issue: 9)
In Focus

Women's Boots Black Black leather boots Woman 20193 Boots 3786024
Women's Boots Black Black leather boots Woman 20193 Boots 3786024 -

Einhorn ... blasting frackers

Greenlight’s Einhorn slams oil frackers for burning cash

The hedge fund manager, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender

BILLIONAIRE hedge fund manager David Einhorn, who often moves a stock simply by speaking its name, kicked off the year’s most prominent investment conference by laying out a case against oil frackers, arguing these companies drill “lots and lots of holes” and burn through plenty of cash.

Einhorn, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender at the 20th annual Sohn Investment Conference. “We call it the motherfracker,” he said, prompting investors to kick the share price down as much as 5.3 per cent. The company should trade closer to $78 a share, he said, not the $166.50 the stock is trading at now.

“Pioneer is burning cash and its reserves are not growing,” said Einhorn, who runs $11 billion Greenlight Capital, adding “Pioneer ought to stop touting estimates based on stale pricing.” The company is losing 20 cents of present value for every dollar it invests.

Einhorn also mentioned EOG Resources, which he called the “father fracker,” Concho Resources, Whiting Petroleum and Continental Resources.

Last year Einhorn unveiled a short bet against athenahealth at a previous Sohn conference and was the first to underscore problems at Lehman Brothers months before the investment bank filed for bankruptcy.

Einhorn was one of the few investors at the conference who unveiled a short bet, as most other investors put forth ideas that investors can buy and hold.

Leon Cooperman and David Tepper talked about markets and sought to soothe investors fearful that the long-running equities bull market might be over.

Tepper, founder of Appaloosa Management, shocked markets a year ago by warning that investors should not be too long in the stock market. He said that investors should not be “too long bonds, not too short stocks” and warned that investors should be careful with commodity investments.

Investors at this conference, even the billionaires, are told to keep it short and talk no more than 15 minutes. Tepper who didn’t use all of his time joked that he would sell some of his unused minutes to Bill Ackman, who is known for speaking at a breakneck pace to race through dozens and dozen of slides.

Cooperman, who runs Omega Advisors and has long been saying the stock market would continue to climb, stuck by his bullish outlook, saying the stock market can still end higher this year. “If there is a bubble out there, it is not in the stock market,” Cooperman said, adding it may be in the fixed income market.

He pitched a handful of US-based companies including Google, Dow Chemical, Priceline Group and drugmaker Actavis.
Picking up on the pharmaceutical industry theme, Larry Robbins, who runs Glenview Capital Management, touted AbbVie, saying the stock price could double. The company’s price is relatively cheap and management is disciplined, Robbins said.

Even though AbbVie called off a planned $55 billion takeover of Shire late last year, industry analysts are still holding out forecasts that the breakneck pace of mergers and acquisitions in the pharmaceutical industry will continue. The company could be taken over or it could be the one taking over someone else, Robbins said.

Ackman, founder and chief executive of Pershing Square Capital Management LP, talked about his most recent addition to the portfolio: Canadian pharmaceutical company Valeant Pharmaceuticals International Inc VRX.TO, which he called “massively undervalued.” He said companies that buy up others at a steady pace are often misunderstood and said Valeant, which announced plans to buy Salix earlier this year, is an early stage Berkshire Hathaway, referring to Warren Buffett’s company.

Keith Meister, a former Carl Icahn lieutenant who now runs $8 billion Corvex Management, focused on fast food restaurant chain Yum Brands, saying his firm is one of the five largest investors and that the company is Corvex’s second-biggest investment ever. Daniel Loeb’s Third Point said it had taken a significant stake in Yum.

More Stories

Women's Quilted Platform Riding Tall Winter Boots High Heel, Shoes, Size 6 , Mudd Brown Cowboy Western CHEYENNE Ankle BOOTS Shoes Sz 5MED NEW $80 , RUE 21 etc! Size 10 RUST Brown SUEDE Western swingy FRINGE Cowboy Boots 2" heel , Madden Girl Zavier Women's Black Leather Slip On Round Toe Ankle Boots Size 8 MEtienne Aigner GRETTA Womens Size 6.5 M Black Patent Zip Side Ankle Boots Heels , Women's MINNETONKA Black Suede Leather Moccasin Ankle Boots Size 9 MBorn Concepts B.O.C. Gates Side Zip Buckle Bootie Brown Womens Sz 7 , Cole Haan Womens camel color Leather Biker Ankle Boots Size 6.5 BWOMEN'S KEDS High Rise SNOW Winter BOOTS Size 9 , Anne Klein Size 8.5 Booties Leather Motorcycle Euc Trendy On TrendKlouds shoes - Orthotic friendly comfort leather dress flats - Florencia , NIB Womens Sperry Saltwater Wedge Tide Quilted Boots in Brown STS80739 Size 7.5NEW Vionic Honor Ashby Leopard Calf Hair Loafer Drivers Shoes WOMENS 10 $140BX555 WALKSAN by SUSIMODA shoes brown leather patent leather women moccasins EUNIB SAINT LAURENT SHEARLING FUR Lined Fringe Moccasins Winter Shoes EUR-38 US-8NIB TORY BURCH ORANGE LEATHER DIVINE BOW DRIVER GOLD REVA BALLET FLATS 8.5J Crew Collection Calf Hair Loafers shoes size 10.5 sienna black cat e0775 , Aquatalia ITALY Women's JACEY Woven Leather Slip-On Loafer Flats NIB Navy $450Jambu Women's Cherry Blossom Mary Jane Flat Black/Seafoam 8 W USWomens New Balance White & Brown Sneaker Tennis Shoes Size 8MARC JACOBS BLUE FLATS SIZE 39 1/2Womens Rhinestone Leather Round Toe Loafers Slip On Flat Casual Boat Shoes 42CAMPER Shoes 462299 BrownxMulticolor 39 , new SESTO MEUCCI 'Bluey' black leather loafers shoes FLATS Italy 6 - VERY SOFTSaucony Womens RideRunning Shoe- Pick SZ/Color. , Skechers Women's You-14958 Sneaker White 8 M USNike Zoom Rival XC Cross Country Track Shoes 749351-580 Womens Size 9 , Skechers Go Walk Original Icon C Navy Womens ShoesWOMENS MUCK BOOTS BREEZY LOW COOL ALL PURPOSE SHOES BROWN/PINK-SEE SIZES (B242) , Vintage Womens Ladies Mid-Calf Boots Faux Suede Block Chunky heels Party shoes ,

Women's Boots Black Black leather boots Woman 20193 Boots 3786024 -